MS had a blow out revenues quarter driven by SPAC and equity effervescence. Other areas in M&A and fixed income were very strong too. But it got partially blown up on Archegos mass liquidation vortex. Still Buy on stock, Move to Buy on benchmark bonds, Very Low systemic risk, Low counterparty risk.
WFC does not have the core drivers gas to justify its stock surge. EPS beat was on reserve releases and restructuring needs to continue. Still some small progress on business/asset sales. Move to Neutral on stock, Sell on benchmark bonds. Regulatory and counterparty risk remains High.
Citi comes up with another strategic refresh plan. But new CEO Fraser seems more convincing as she focuses on Citi's competitive advantages. Move to Neutral on stock and benchmark bonds. Regulatory and counterparty risk at Medium levels.